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The cost of austerity: Lessons for South Africa

Using international evidence, this literature review shows how austerity leads to rising unemployment, falling incomes and increased inequality.

Using international evidence, this literature review shows how austerity leads to rising unemployment, falling incomes and increased inequality. The most marginalised groups in society, including women, children, minorities, migrants and the poor, feel the biggest impacts. This paper cautions against South Africa’s deepening of its implementation of austerity policies and proposing an alternative fiscal stimulus route.